Getting Insurance for a Used Cryotherapy Machine
Do you need insurance for a used cryotherapy machine?
Insuring your cryotherapy machine ensures you remain in business even after a breakdown. Older used machines that are past the expiration of the manufacturer’s warranty period can leave you at a great loss when the machine breaks down. Taking an insurance cover for a used cryotherapy machine often seems like a good way to protect your investment, making the idea of getting a used machine more attractive as opposed to getting a new one. There are however some misconceptions about the idea that you might have.
3 Misconceptions About Cryotherapy Machine Insurance
It Is Cheaper to Insure a Used Machine Than a New One
The insurance payments for an old machine are very high when comparing to those of a new cryotherapy machine. While some percentage of the value of the policy is based on the value of the machine, the insurance firm will base most of their calculation on the possibility of a payout. New machines are less likely to break down and are under a warranty. This means that the chances for an insurance firm paying out for a new machine are less.
Taking an Insurance Cover Guarantees a Payout if the Machine Breaks Down
An insurance cover is not a guarantee for a full payout. A lot of consideration goes into paying out a claim by an insurance firm so your machine breaking down does not assure you of a payout. While this still applies when you take an insurance cover for a new machine, it is less likely to break down. The manufacturers also offer a warranty which ensures that you get most of your money back before you need the insurance to payout. Insurance claims may also take a bit of time before they payout. As you are waiting for the insurance claim to fulfill, your business may suffer a loss of clients and other downtime effects.
Insurance Covers All That Could Go Wrong With the Used Machine
Insurance companies want to reduce the number of claims that they have to pay. So, the language on the insurance cover is usually very specific.¹ This means that you can only insure against things that you can foresee. Let's say something happens to your machine. And the damage is not part of the insurance contract. In this case, the insurance firm has no obligation to pay out the claim. The more general your cover is, the higher the insurance payments will be.
Nobody can predetermine how your used machine might break down, and you cannot insure against all the possible risks. There will always be a chance paying insurance premiums doesn't result in getting a payout in case of a breakdown.
Cryotherapy Machine Insurance: Why Getting a Cover for a Used Machine Is Not the Solution
Buying a used machine and getting insurance for it might look like a great option at first. But it is not always the case. Always weigh out all your options before making the purchase.
Links to Sources Used
Why Insurance Policy Language Matters - https://www.irmi.com/articles/expert-commentary/why-insurance-policy-language-matters